what is it? why does it matter to customer...

Employee Experience: What is it? Why does it matter

to customer experience?Stacia Sherman Garr, Co-founder & Principal Analyst RedThread Research

www.redthreadresearch.com@StaciaGarr, @RedThreadRe

Copyright RedThread Research, 2019. All rights reserved.

Employee Experience: What is it? Why does it matter to customer experience?Stacia Sherman Garr, Co-founder & Principal AnalystRedThread Research www.redthreadresearch.com @StaciaGarr, @RedThreadRe


Agenda

• The state of work today

• Why employee experience matters

• Maximizing the impact of employee experience

• Steps your organization can take today

• Wrap-upCopyright RedThread Research, 2018. All rights reserved.

@StaciaGarr, @RedThreadRe

Copyright RedThread Research, 2019. All rights reserved.Copyright RedThread Research, 2019. All rights reserved.

The State of Work TodayAnd why it makes employee experience more important than ever



Companies are growing

Photo by Kent Pilcher on Unsplash

Source: Standard & Poor’sCopyright RedThread Research, 2018. All rights reserved.

Sales growth rate, Year-on-Year, 2001- March 2018 (Inflation adjusted)

Copyright RedThread Research, 2019.

6.47%



The market’s climb is breathtakingDow Jones Industrial Average, 2009-2019

Source: DJIA, Macrotrends.netPhoto by Samuel Zeller on Unsplash


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But all is not as it appearsPhoto by Zaji Kanamajina on Unsplash



Copyright RedThread Research, 2019. All rights reserved.Source: “Dying for a Paycheck,” Pfeffer, 2018; “Work and the Loneliness Epidemic,” Murthy, HBR, 2017.

Many workers are not well61% of US employees have said their workplace has made them sickJob-related stress causes 120,000 excess deaths per year in the US and nearly a million in ChinaMortality rate of loneliness is greater than smoking 15 cigarettes per day

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Copyright RedThread Research, 2019. All rights reserved. Source: Gallup, 2018.

Many are not enthusiastic about their jobs

• Half of employees are looking for new jobs• 87% of employees are not engaged

Photo by Kyler Boone on Unsplash



Copyright RedThread Research, 2019. All rights reserved.Source: “Exponential Organizations,” Ismail, Malone, and Van Geest, 2014.

Companies are dying fasterAverage lifecycle of a company down to ~15 years from 67 years in 1920s40% of today’s S&P 500 companies will be replaced by 2028On average, a company is disrupted every 3.1 years

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Why?

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Over the last 100 years, we focused on:

Efficiency at the expense of adaptability

Hierarchical control over decentralized enablement

Separated education over embedded continuous learning

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We have to think about the next 100 years differently from the last 100 years

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By focusing on what makes us humans, not machines

But how?

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Enter Employee ExperienceWhat it is and why it matters



All humans have needs

Autonomy: “I have a choice”

Competence: “I am effective”

Relatedness: “I feel connected”

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Employee Experience (EX)

Employees’ collective perceptions of their ongoing

interactions with the organization

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Perceptionswhat employees

encounter, observe, hear

Interactionshow employees and

organizations interact via organizational practices,

work environment, culture




Employee Engagement

A measure of energy, involvement, and

concentration that is exhibited in work attitudes and

behaviors




Employee experience and employee engagement are not the same thing

Cause

Bottom-up

Broad scope

What organizations do, say, give

Effect

Top-down

Narrow scope

What employees see, hear, feel

Employee Experience

Employee Engagement



A dynamic employee experience framework

Organizational Practices

Employee Perceptions

Employee Engagement

What organization does

What employee perceives

How employee feels and behaves

Extent to which core needs of autonomy, competence, relatedness are satisfied



The value of employee experienceCompanies that invest in employee experience outperform others

4.2x4.0x

2.8x2.1x

1.5x

Average profitProfit per employee

Revenue per employeeAverage revenue

Employee growth (%)Source: The Employee Experience Advantage, J. Morgan, 2017

122% in S&P 500

Source: Glassdoor study, 2015



The link between employee experience and customer experience (CX)

75% of employees are

highly or moderately engaged in companies that lead in customer experience

Organizational Practices

Employee Perceptions

Employee Engagement

Source: Temkin Employee Engagement Index, 2016



Maximizing the Impact of Employee ExperienceWhile also driving customer experience



The CARE framework: Maximizing the impact of EX on CX

Connect employees to customers

Ask and listen

Reflect the company’s brand

Enable employees Copyright RedThread Research, 2019. All rights reserved.



• Bring the customer promise to life for employees

• Give employees a voice to find and share solutions

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Connect employees to customers



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For example: Airbnb

• Created “Belong Anywhere,” an integrated CX-EX brand• Infused mission and values

into the brand • Connected customer and

employee promise

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Ask and listen

• Ask meaningful questions to employees

• Listen to stories, pay attention to emotions

• Take swift action

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For example: General Electric

• Collected employees’ ideas to improve processes

• Created “PD@GE” to facilitate feedback, track priorities and insights

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• Align external and internal brands

• Evaluate and leverage existing tools

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Reflect the company’s brand



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For example: Mastercard

• Brought well-known external brand “Priceless” in-house

• Created an internal story for employees, and scaled it globally

Photo by Mastercard Europe



• Offer tools that enable employees to effectively serve customers

• Prioritize tools that foster objective decision-making and choice

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Enable employees



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For example: Humana• Provided tool to give

employees real-time feedback to adjust their approach during customer calls• Improved customer

satisfaction (28%) and employee engagement (63%)

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Action Steps for Your CompanyThree ideas you can get started on immediately



Action #1 Build Transparency

Connect customer feedback to employee feedback to uncover opportunities for improvement

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Action #2Examine

WorkflowsHow work gets done to identify and address process bottlenecks

and communication silosPhoto by Ryan Plomp on UnsplashCopyright RedThread Research, 2019. All rights reserved.


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Action #3Embrace Agility

Focus on people and interactions, supportive practices, adaptability

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Wrap-upAnd how to stay in touch



1. Exceling in the Future: We need to focus on what makes us human

2. Human Focus: Three innate and universal needs

3. Employee Experience, Employee Engagement: Related, but not the same

4. Value: Companies with a positive employee experience outperform

5. Maximize Impact: C.A.R.E.

6. Action Items: Build transparency, examine workflows, embrace agility

Final thoughts




Join us!

Stay up to date on the latest insights: www.redthreadresearch.com

Stacia Sherman GarrCo-founder & Principal AnalystRedThread [email protected]://www.linkedin.com/in/staciashermangarr/

@StaciaGarr

@RedThreadRe

Copyright RedThread Research, 2019.

mailto:[email protected]

https://www.linkedin.com/in/staciashermangarr/

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